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European Commission Welcomes the Adoption of the EU's Long-Term Budget for 2021-2027 — Orbitax Tax News & Alerts

The European Commission has issued a release welcoming the adoption of the EU's long-term budget for 2021-2027 and the approval of the new Own Resources Decision by the European Council, which now requires ratification by the Member States. In order to help repay borrowing, the budget Q&A notes the new own resources that are planned to be introduced to complement Member States' contributions to the EU budget. The roadmap agreed on 10 November 2020 contains clear commitments regarding the type of these new own resources, and the envisaged timeline for their proposal and introduction:

  • The Commission has committed to put forward proposals on a carbon border adjustment mechanism and on a digital levy as new own resources by June 2021, with a view to their introduction at the latest by 1 January 2023.
  • The Commission will also review the EU Emissions Trading System in spring 2021, including its possible extension to aviation and maritime. It will propose an own resource based on the Emissions Trading System by June 2021.
  • In addition, the Commission will propose further new own resources, which could include a Financial Transaction Tax (taking into account developments in the currently ongoing work on the enhanced cooperation) and a financial contribution linked to the corporate sector or a new common corporate tax base. The Commission will work to make relevant proposals by June 2024.